Beat the deadline to become AR or incur double fees

The network, Homeloan Partnership, is reminding DA firms thinking about changing to AR status not to leave their decision too long and risk incurring a further year of fees paid to the Financial Services Authority.

Chris Tanner, managing director of HLP, says that every year firms leave it too late and end up having to pay the FSA an extra year’s fees.

He says: “It is particularly important this year with Mortgage Market Review hanging over the market like a pall and many DA firms considering for the first time that the burdens likely to be imposed by the MMR could make their current status untenable.

“I really would urge those who are thinking about moving across to AR status that this is the time to start the process. There are many cases where the decision is taken too late and firms trade through the April 1 deadline and become liable for a whole year’s fees.

“The FSA does not do rebates. I have often talked to firms that have wanted to move to AR status but left it too long and ended up paying for something that they no longer needed or wanted.”

He adds that the MMR is unlikely to go away and the increased cost to DA firms means the advantages of AR membership are compelling.